AirIQ announces layoffs, unbundling of airtime and equipment billing

TORONTO (June 28, 2002) — After announcing that it had attained more than 25,000 subscribers to its wireless communications services, AirIQ Inc. said it has cut 25 employees, or about 28 per cent of its total workforce.

The Pickering, Ont., company said the move reflects a decision to focus on acquiring larger accounts, the maturity of its technology, and the completion of certain internal business automation projects.

The layoffs are expected reduce annual operating expenses by about $2.85 million, the company said. Combined with previously announced reductions, the company said it has reduced annual operating expenses by about $4.85 million.

The company said it has further reduced cash requirements by changing to an equipment sales model instead of bundling wireless communications equipment and airtime for a single monthly fee.

“We have developed an impressive subscriber acquisition engine, which we now intend to direct toward larger accounts, our most cost-effective path to expedited growth,” said Donald E. Simmonds, president and chief executive officer.

“With our automation projects engaging, we can continue our growth while making this further substantial reduction in our operating infrastructure costs.”